Two former Health Department public servants embroiled in findings of massive waste and mismanagement will escape penalty, while one now works for a private contractor on the new Perth Children's Hospital, it has been revealed.

Telstra has reported revenue of $1.3 billion for its Network Applications and Services business for the first half of FY16, representing growth of almost 33 per cent on the previous corresponding period.

A damning report into the West Australian Department of Health's management of its computer systems has detailed a litany of mismanagement and waste, with the findings referred to the state's corruption watchdog.

Healthcare chief executives Peter Gregg and Colin Goldschmidt, whose businesses have been stung by pathology funding cuts, have criticised the government's health policy and warned that Australia was taking its first step toward a two-tiered system of care.